IDEAS home Printed from https://ideas.repec.org/p/ris/drxlwp/2020_013.html
   My bibliography  Save this paper

Global Firms and Emissions

Author

Listed:
  • Kwon, Ohyun

    (School of Economics LeBow College of Business Drexel University)

  • Zhao, Hao

    (Chapman University)

  • Zhao, Min Qiang

    (MOE Key Laboratory of Econometrics)

Abstract

This paper finds that both importing and exporting can effectively reduce firm-level emission intensities. In our theoretical contribution, we develop a model in which firms endogenously determine whether or not to import foreign intermediate inputs and the extent of investment in emissions abatement. The model shows that the complementarity between import and abatement decisions reduces firm-level emission intensities when firms import foreign intermediate inputs. In our empirical contribution, we estimate a theory-guided regression model using Chinese firm-level data on emissions and trade. Our IV regression results show that when a firm starts importing, its emission intensities drop by approximately 30% across the types of emissions that we study. The estimate of the export margin, despite being statistically significant in the OLS results, appears to be more sensitive to regression specification in the IV results and is lower in magnitude than that of the import margin

Suggested Citation

  • Kwon, Ohyun & Zhao, Hao & Zhao, Min Qiang, 2020. "Global Firms and Emissions," School of Economics Working Paper Series 2020-13, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2020_013
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1o7gjEX5nMrGPzlRKZayoUpCVHkBbFqZe/view?usp=sharing
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. He, Ling-Yun & Huang, Geng, 2022. "Are China's trade interests overestimated? Evidence from firms’ importing behavior and pollution emissions," China Economic Review, Elsevier, vol. 71(C).

    More about this item

    Keywords

    International trade; Emissions; China;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:drxlwp:2020_013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richard C. Barnett (email available below). General contact details of provider: https://edirc.repec.org/data/cbdreus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.